Why Nigerians choose to go to Europe? 

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Nigeria, a nation teeming with a population exceeding 200 million, is witnessing a significant exodus of its citizens towards Europe, with a notable preference for the United Kingdom. According to World Bank data, the country’s population witnessed a robust 2.4% growth in 2023, contributing to an average annual growth rate of around 2.6%.

If this trajectory persists, Nigeria’s population could potentially double within the next 25 to 30 years.

This rapid growth is prompting many Nigerians to explore opportunities beyond their homeland, with Europe, particularly the UK, emerging as a favoured destination, according to research professional news. The surge in the number of Nigerians residing in other countries, almost tripling from 1990 to 2020, reflects an evolving trend wherein more individuals are searching for a life abroad. 

Economic Disparities and Currency Stability

The economic situation in Nigeria plays an important role in driving citizens toward considering a life in Europe. The volatility of the Nigerian Naira contributes to financial challenges, making the stability of the Euro an attractive prospect.

The exchange rate of the euro to the Naira, at (EUR1 to NGN1047.79), highlights the instability of the Nigerian currency.

As of January 17, 2023, the exchange rate of the euro to the Naira, at (EUR1 to NGN1047.79), highlights the instability of the Nigerian currency. This disparity is further magnified by the stark difference in remuneration, with the European minimum wage ranging between €2.41-€14.29 per hour compared to Nigeria’s minimum wage of €0.165 per hour (NGN160.63 per hour).

The economic challenges are highlighted by the fact that around 46% of Nigerians live below the national poverty line, and an estimated 104 million are in impoverished conditions according to data from the World banks 2023 Nigeria Development Update.

The potential food insecurity crisis affecting 19.4 million Nigerians intensifies the urgency for seeking opportunities abroad, where stable currency, higher wages, and improved living standards become powerful incentives. 

Unemployment

Unemployment in Nigeria, reported at 4.2% in Q2 2023 by the Nigerian Bureau of Statistics (NBS), has seen a slight increase from the previous quarter. However, these numbers only scratch the surface of a more complex narrative. Significant changes in unemployment statistics reveal a decline from 33.3% in Q4 2020 to 5.3% (Q4 2022), attributed to a refined employment definition in line with the International labor organization standards (ILO). This revised approach distinguishes between underemployment and unemployment, providing a more precise portrayal of the labor market. The exclusion of subsistence agricultural workers from the employed category, coupled with improved sampling methods and data quality monitoring, enhances the clarity of the new unemployment rate, allowing for international comparisons that align with Western and Central Africa’s averages at 4.7% in 2022.

Simultaneously, the youth unemployment rate for individuals aged 15-24 has increased from 6.9% to 7.2% in Q1 2023. Despite these Numbers, Nigerians are exploring alternative avenues for personal and professional growth. Europe, with its low unemployment rates and a high demand for labor, presents an attractive destination. Many Nigerians are seizing this opportunity, reflecting a global trend of migration for better employment prospects. The struggle for gainful employment not only impacts individual aspirations but also places economic strain on families and communities, making overseas employment increasingly appealing.

Education (UK preferred destination)

Many Nigerians choose to come to Europe for educational purposes, seeking opportunities to study and enhance their knowledge.

Among the various European destinations, the United Kingdom stands out as a particularly favoured choice for Nigerian students. 

Nigerian students often find the educational system in the UK appealing due to its reputable universities, diverse academic programs, and a globally recognized education system. The preference for the UK is rooted in the belief that it offers a high-quality learning experience and opens doors to promising career opportunities. 

However, a recent policy change in the UK has added a layer of complexity to the decision-making process for Nigerian students.

Starting from January 1st, 2024, international students studying in the UK will no longer be able to bring dependents with them on their student visas

Starting from January 1st, 2024, international students studying in the UK will no longer be able to bring dependents with them on their student visas, except for those enrolled in research postgraduate programs. This policy shift has prompted many Nigerian students to explore alternative educational opportunities in other countries. 

Despite this challenge, the inclination towards the UK remains strong, and Nigerians are actively seeking alternatives that align with their academic and personal aspirations. The search for viable options has led some to consider countries with welcoming immigration policies, robust educational systems, and potential career prospects. This dynamic situation highlights the resilience and adaptability of Nigerian students in navigating changes in international education policies. 

Family-Centric Values and Remittances 

The strong emphasis on family values among Nigerians is a significant factor influencing migration trends. The commitment to the welfare of extended family members is evident in the substantial inflow of remittances, averaging over $20 billion annually. These remittances play a crucial role in enhancing household incomes and addressing various needs, including education, healthcare, housing, and daily living expenses. The act of sending remittances becomes a tangible expression of migrants’ commitment to ensuring the prosperity and progress of their families back home, reinforcing family bonds despite physical distances. 

Insecurity

Nigeria’s significant security challenges, highlighted by its ranking at 143 out of 163 nations in the 2022 Global Peace Index according to the International Trade Administration (ITA), these contribute to the appeal of safety and stability in Europe.

The concerning terrorism index, with groups like Boko Haram and ISWAP perpetrating attacks, along with the escalation of community clashes and kidnappings, adds complexity to the security situation.

The tangible impact of these security challenges, both in terms of incidents and the financial toll through substantial ransom payments, underscores the pivotal role of security issues in motivating Nigerians to seek a more stable life in Europe. 

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The rising tide of Serbia’s IT market

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This sector, once a modest part of Serbia’s economy, has undergone a remarkable transformation, now standing at the forefront of its economic development. This article aims to offer a comprehensive analysis of the IT market in Serbia, exploring the various aspects that have fuelled its rapid growth, the challenges that have arisen in its path, and the potential future trajectory that this sector might take.
 

Current employment landscape in Serbia 

According to data from the first quarter of 2023 by the Statistical Office of the Republic of Serbia’s Labour Force Survey (LFS), the employment landscape in Serbia is witnessing significant and encouraging changes. The total number of employed individuals stood at 2,835,900, marking an employment rate of 49.6%. The unemployment rate concurrently registered at 10.1%, reflecting an overall positive trend in the job market. 

This period saw an addition of 31,600 employed persons compared to the first quarter of 2022, indicating a robust and improving job market.

A notable shift was observed in the sector-wise distribution of employment. The manufacturing sector emerged as a leading growth area, adding 28,700 new jobs. Conversely, the agriculture, forestry, and fishing sectors experienced a decline in employment numbers. 

The increase in formal employment by 43,900, predominantly in the manufacturing sector, juxtaposed with a decrease in informal employment, signifies a crucial shift towards more structured and formalized economic activities. This transition is particularly significant for the IT sector, which typically thrives in a formalized and organized business environment.

The growth in formal employment sectors potentially creates a more conducive atmosphere for IT and technology-related industries, aligning with the global trend towards digitalization and technological advancement. 

These employment patterns not only reflect the resilience and adaptability of Serbia’s economy but also underscore the integral role of the IT sector in shaping the country’s economic landscape. 

The growth trajectory 

The growth trajectory of the Serbian IT sector is a remarkable story of resilience, strategic evolution, and adaptability. From its nascent stages characterized by small-scale software development firms, the sector has matured into a vital cog in the wheel of Serbia’s economic machinery.

This journey from modest beginnings to becoming a major contributor to the nation’s Gross Domestic Product (GDP) is a testament to its potential and the strategic focus of both the government and private players in the industry. 

In 2021, the contribution of the IT sector to Serbia’s GDP was an impressive 6%, marking a significant increase from 4.5% in 2018.

This rise is not merely a statistical highlight but a reflection of the sector’s deepening impact on the economy.

The steady growth rate also mirrors the global trend of digitalization and the increasing reliance on technology in various sectors. 

This upward trend in the IT sector’s economic contribution is mirrored by the expanding ecosystem of IT enterprises and professionals in Serbia. From approximately 2,300 IT companies in 2018, the number has surged to over 3,500 in 2022, according to a report by the Serbian Business news. This increase is indicative of a flourishing entrepreneurial spirit and the emergence of Serbia as a favourable destination for IT startups and established tech companies looking to expand their operations in Eastern Europe. 

Furthermore, the sector’s growth is bolstered by the rising number of IT graduates, growing from 1,200 in 2018 to 1,800 in 2022. This increment is a clear indicator of the burgeoning interest among the youth in IT as a career choice.

Universities and educational institutions in Serbia have played a pivotal role in this aspect, constantly updating their curriculum to align with the latest industry trends and demands. Partnerships between academic institutions and IT companies for internships and research projects have further strengthened this growth trajectory. 

The robust growth of the IT sector in Serbia is also a result of a supportive legislative framework and strategic government initiatives

The robust growth of the IT sector in Serbia is also a result of a supportive legislative framework and strategic government initiatives aimed at fostering innovation and technological advancement. Tax incentives for IT companies, investments in tech parks, and a focus on improving digital infrastructure have made Serbia an attractive destination for foreign investments in technology. 

Moreover, the growth of the IT sector in Serbia is not just confined to the numbers. It has had a ripple effect on other sectors as well, leading to an overall boost in the digitalization and modernization of various industries. From e-commerce and fintech to healthcare and education, the influence of the IT sector’s growth is widespread, paving the way for a more interconnected and technologically advanced economic landscape. 

Factors driving growth 

The robust growth of Serbia’s IT sector is not an isolated phenomenon but a result of a confluence of several key factors. Each of these elements has contributed uniquely to creating an environment conducive to the development and expansion of the technology industry, as highlighted by the International trade association’s Serbia – Country Commercial Guide. 

Educational excellence and workforce development 

At the forefront of these growth drivers is Serbia’s commitment to education, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields. Serbian universities, notably those in Belgrade, Novi Sad, and Niš, are renowned for their rigorous IT and engineering programs.

These institutions have become incubators for a new generation of tech-savvy professionals, providing a steady stream of highly educated graduates ready to enter the IT workforce. The curriculum in these universities is continually updated to keep pace with global technological advancements, ensuring that graduates are not just academically proficient but also industry-ready. 

Furthermore, the collaboration between universities and the IT industry through internships, research projects, and industry-sponsored programs has created a symbiotic relationship. This partnership ensures a practical, hands-on approach to learning, equipping students with the skills and experience needed to thrive in the rapidly evolving tech landscape. 

Competitive business environment 

Another pivotal factor is the competitive cost of doing business in Serbia, especially within the IT sector. Compared to other European countries, Serbia offers a more favourable economic environment for businesses, with lower operational costs including labor, utilities, and office space.

This cost-effectiveness has made Serbia an attractive destination for foreign investments and multinational companies looking to establish or expand their tech divisions. The country’s strategic geographical location, offering easy access to European, Middle Eastern, and North African markets, further enhances its appeal as a business hub. 

Proactive government policies 

The Serbian government’s role in catalysing the growth of the IT sector cannot be overstated. Recognizing the sector’s potential in driving economic growth and job creation, the government has implemented a series of policies and initiatives designed to foster a thriving tech ecosystem. These include substantial tax incentives for IT companies, aimed at stimulating growth and innovation.

The government has also invested heavily in the development of technology parks and business incubators, creating physical spaces that facilitate collaboration, innovation, and the sharing of resources among startups and established tech firms. 

Additionally, initiatives to bolster the digital infrastructure of the country have been a key focus. Efforts to enhance internet connectivity, digitalize public services, and support the adoption of new technologies across various sectors have laid a strong foundation for the IT industry’s growth.

Challenges and opportunities

Addressing the challenges

While the growth of Serbia’s IT sector is undeniably impressive, it is not without its challenges, which need to be acknowledged and addressed to ensure sustainable development. 

Brain Drain 

One of the most significant challenges is the phenomenon of ‘brain drain.’ Many talented IT professionals in Serbia, attracted by higher salaries and better career opportunities, choose to migrate to other countries. This migration of skilled workers not only depletes the domestic talent pool but also means a loss of potential innovation and economic contribution. To combat this, there needs to be a focus on creating more attractive working conditions within Serbia, including competitive salaries, career development opportunities, and a supportive work environment. 

Technological advancements and upskilling 

Another challenge is keeping pace with the rapid advancements in technology. The IT sector is continually evolving, and there is a pressing need for continuous learning and upskilling of the workforce. Serbian IT companies and educational institutions must work together to ensure that the workforce is up-to-date with the latest technological trends and skills. This could be achieved through regular training programs, workshops, and collaboration with international tech firms. 

Harnessing the opportunities 

Despite these challenges, the IT sector in Serbia is ripe with opportunities that can be leveraged to foster further growth and development. 

Surge in global demand for IT services 

There is a global surge in demand for IT services, particularly in areas such as software development, cloud computing, and cybersecurity. Serbia, with its strong base of technical expertise and competitive cost structure, is well-positioned to capitalize on this demand. By focusing on these high-growth areas, Serbia can not only expand its IT sector but also establish itself as a leader in these fields. 

Potential as a regional hub for IT innovation 

Serbia also has the potential to become a regional hub for IT innovation. Its strategic geographic location, coupled with a skilled workforce and supportive government policies, creates a conducive environment for IT businesses to thrive. There is an opportunity to attract foreign direct investment, encourage the establishment of research and development centres by multinational companies, and promote the growth of homegrown IT startups. 

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Climate change drives international mobility. Spain attracts European workers seeking to escape cold, wet weather

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Contrary to prior expectations, countries traditionally known for colder climates, such as Finland, Sweden, and the Netherlands, are witnessing a decline in appeal among workers who want to work international. Even residents of these regions are expressing a strong likeness toward warmer destinations, marking a surprising trend, taking climate change into account where hotter countries are getting even more hot or too hot. 

This shift emphasizes the increasing significance of climate preferences in shaping Europeans’ decisions regarding their living and career choices of international mobile workers.

It goes beyond mere changes in weather patterns, significantly influencing migration within the continent. Weather conditions play a pivotal role in migration patterns, impacting decisions to relocate. Factors like extreme temperatures, varying levels of sunlight, precipitation, natural disasters, and seasonal changes weigh heavily in these decisions, underscoring the profound influence of climate change on Europeans’ lives.”

Spain’s emergence as a climate-driven migration destination

Spain has emerged as a highly sought-after destination for individuals contemplating relocation due to changing climatic conditions. According to Intelligence Group’s pooling of almost 8,800 individuals seeking employment opportunities across Europe, an impressive 35% express a keen interest in Spain as their potential relocation spot. 

The driving force behind this attraction lies in Spain’s awe-inspiring landscapes and sunny weather, which captivates the attention of prospective migrants. 

A notable trend among remote workers reveals a preference for warmer climates during winter months, returning to their home bases when temperatures soar. Spain’s ascension as a preferred choice aligns harmoniously with this factor, catering to those in search of a more temperate climate for seasonal habitation. 

Moreover, the accessibility and cost-effectiveness of intra-EU travel significantly contribute to Spain’s allure.

The average pricing of plane tickets within the EU typically ranges between €100 to €200, while train fares range from €50 to €150, facilitating seamless mobility between different European countries. 

The surge in interest towards Spain transcends its aesthetic appeal; it mirrors a broader movement where individuals actively seek environments aligning with their climate preferences, particularly prominent among the remote working community. The convenience and affordability of traversing within the EU further fortify Spain’s attractiveness as a climate-friendly haven for potential migrants. 

Top countries preferring Spain’s climate

Rank Country Percentage (%)
1 Romania 59
2 Sweden 54
3 Netherlands 48
4 Denmark 48
5 Belgium 46
6 United Kingdom 44
7 Ireland 41
8 Bulgaria 37
9 Italy 34
10 Germany 32
11 France 32
12 Hungary 28
13 Poland 28
14 Austria 17
15 Switzerland 16
16 Czech Republic 13

 

Iceland: A less preferred destination  

Contrary to the trend favoring Spain, Iceland emerges as a less favored destination for those considering climate-motivated migration, with a mere 4% of survey respondents indicating interest. Several factors contribute to this lesser appeal, including Iceland’s remote geographical location, harsh weather conditions, limited employment prospects, and being an expensive country.

Individual preferences play a significant role in shaping decisions regarding relocation.

However, it’s essential to acknowledge that individual preferences play a significant role in shaping decisions regarding relocation. While Iceland may not align with the preferences of a majority seeking climatic shifts, some individuals might still find its unique offerings appealing despite the challenges it presents. 

This structure aims to present a holistic view of climate-driven migration patterns, highlighting the varying implications and emerging preferences observed across different European nations, including both popular and less popular destinations like Spain and Iceland, respectively. 

Weather’s Profound Influence on Migration  

The pursuit of improved quality of life, safety, and expanded opportunities often propels individuals to seek refuge from regions grappling with severe weather conditions, such as droughts or extreme cold. Driven by the quest for stability, people migrate toward areas promising enhanced living standards and greater prospects for a fulfilling life.  

Furthermore, climate-induced alterations, like rising sea levels and shifts in agricultural landscapes, compel individuals to seek more conducive living environments. The search is for places where they can survive and thrive.

Predicting the scale of future migrations due to these changes presents significant challenges. Factors such as population growth, poverty, and socio-political issues complicate estimations. The International Organization for Migration (IOM) projects around 25 million to one billion individuals migrating by 2050. The gap in range highlights the complexities and unpredictability of these shifting migration patterns. 

Climate-Driven labor mobility in the EU: Implications and policy considerations

The anticipated influx of environmental migrants into the EU labor market extends beyond demographic changes. This shift could trigger alterations in workforce composition, skill demands, and geographic preferences for job opportunities within the EU.  

Adjusting policies to support adaptation, skill enhancement, and employment opportunities in regions affected by environmental changes is crucial. These measures aim to minimize potential disruptions in the labor market. There’s a pressing need for proactive strategies that aid the smooth integration of incoming populations seeking refuge due to environmental challenges. Adapting to these changing workforce dynamics amid environmental shifts is paramount. 

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Geert Hofstede: Pioneering cultural understanding in global dynamics 

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Imagine a Chinese and a European company working together. The way they do business is pretty different. In China, they care a lot about who’s in charge and everyone agrees. But in some parts of Europe, like Germany, they prefer talking openly and sharing ideas, even if there’s a boss.

This clash can make it hard for them to work well together.

Hofstede’s idea about “Uncertainty Avoidance” comes into play here. It’s about how comfortable people are with not knowing everything.

To make things work, both sides need to understand and respect each other’s way of doing things. Finding a middle ground where they talk openly but also consider who’s in charge can help them collaborate better.

Geert Hofstede stands as an important figure in the world of understanding cultural dynamics within global organizations and societies. His intense exploration into the influence of cultures on workplace values remains an enduring cornerstone in intercultural studies.  

Hofstede’s thorough journey began within the domain of IBM International, where his initial entry into personnel research sparked a trajectory that redefined cross-cultural understanding. His groundbreaking work went beyond mere observations, conducting extensive research and thorough analysis into the complex connections between cultural backgrounds and the values individuals uphold in their workplaces. An example of how the Hofstede model works using the country comparison tool is shown in the video below:

 

The Genesis of Hofstede’s Model (six key cultural dimensions) 

Hofstede’s significant contributions revolve around his groundbreaking exploration of cultural dimensions, which led to the creation of the Hofstede Cultural Dimensions Theory. From this work, he developed six key cultural dimensions. 

#1. Power Distance Index (PDI)

This dimension outlines the extent to which societal hierarchies are accepted or challenged within a culture. Countries with high PDI exhibit stronger acceptance of hierarchical structures. On the other hand, lower scores signify a culture that values equality, minimizes hierarchical gaps, and emphasizes fairness and collective well-being among individuals.

For instance Japan has a higher Power Distance Index (PDI), emphasizing respect for authority and strict hierarchical structures. Conversely, Sweden has a lower PDI, valuing equality, fostering open workplaces where challenging norms is encouraged. These differences significantly shape workplace dynamics and communication styles, crucial for effective cross-cultural collaboration.

#2. Individualism vs. Collectivism (IDV)

Exploring the balance between individual autonomy and group cohesion, this dimension illustrates whether societies prioritize individual achievements or collective well-being. For instance, the United States, an individualistic society, emphasizes personal achievements, autonomy, and individual goals. In contrast, China, a collectivist culture, places greater importance on group harmony, collective well-being, and loyalty to the community or family over individual pursuits.

#3. Masculinity vs. Femininity (MAS)

Unveiling societal values, this dimension contrasts assertiveness, competitiveness, and material success (masculine) against nurturing, cooperation, and quality of life (feminine).For instance, Germany tends to prioritize assertiveness, competition, and career success, reflecting a higher Masculinity score. In contrast, the Netherlands values cooperation, quality of life, and work-life balance, indicating a higher Femininity score.

#4. Uncertainty Avoidance Index (UAI)

Reflecting a society’s tolerance for ambiguity and unpredictability, this dimension measures the degree to which cultures seek to mitigate uncertainty through strict rules and conventions. Japan typically demonstrates a high Uncertainty Avoidance Index (UAI), emphasizing structured norms and strict rules to mitigate ambiguity. In contrast, Denmark often shows a lower UAI, embracing ambiguity, being open to change, and displaying a more relaxed approach to rules and conventions.

#5. Long-Term Orientation vs. Short-Term Normative Orientation (LTO)

Divulging a society’s temporal focus, this dimension juxtaposes values emphasizing tradition, perseverance, and long-term rewards against those valuing immediate gratification and adherence to norms. Following this model, China often emphasizes Long-Term Orientation (LTO), valuing tradition, perseverance, and long-term rewards, compared to the United States which tends towards Short-Term Normative Orientation, prioritizing immediate gratification, adaptability, and achieving short-term goals.

#6. Indulgence vs. Restraint (IVR)

This dimension delineates a society’s approach to gratifying human desires and impulses, portraying the extent of societal control over gratification. A country like Brazil tends to score higher on Indulgence, emphasizing gratification of desires and a relaxed approach to social norms. Conversely, Japan aligns more with higher Restraint, prioritizing self-discipline, moderation, and adherence to societal norms over immediate gratification.

Implications and impact of Hofstede’s Model for recruiters 

Hofstede’s model became pivotal for international recruiters dealing with the complexities of talent acquisition. Utilizing these dimensions, organizations tailored recruitment strategies to create inclusive workplaces sensitive to diverse cultural backgrounds. For instance, multinational companies used insights from Hofstede’s model to customize management approaches, communication strategies, and team-building initiatives across borders, fostering improved collaboration and productivity.

Critiques and ongoing discourse

Despite its widespread acceptance, Hofstede’s model hasn’t been immune to critique. Some scholars challenge its applicability at the individual level within sampled countries, highlighting limitations in explaining singular behaviors based solely on national differences. Critics also question the level of determinism embedded within the model’s framework, emphasizing the need for a detailed understanding of cultural complexities beyond predefined dimensions. 

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The nice and naughty persons and companies of 2023 by Chad & Cheese…

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The podcast is quite famous for being bold and discussing a wide range of work and recruitment related topics. In this particular episode, they took a step into analyzing which companies and individuals excelled and which ones didn’t during the year.  

The “Naughty” side focused on who didn’t do so well. The “nice” side celebrated those who did exceptionally well.

Naughty List

#1. Elon Musk

Elon Musk faced criticism for his impact on Twitter (Now X). People were unhappy with his approach to handling false information, which made the platform’s environment worse. Additionally, his actions caused concern among advertisers and users about the platform’s future changes and how they might affect everyone.

#2. Andi Owens, CEO of MillerKnoll

Andi Owens, landed on the “Naughty” list after facing considerable backlash for comments perceived as insensitive to employee concerns. During a town hall meeting, her remarks about bonuses and remote work were criticized, seen as prioritizing personal interests over worker welfare. Owens’ use of the phrase “leave pity city” while addressing team motivation during a tough period fueled controversy, contributing to her placement on the list.  

However, following the incident, Owens issued an apology to associates and engaged in discussions with company leaders, aiming to rectify any impact caused by her statements. 

#3. Companies and politicians relaxing child labor laws

States like Iowa, Missouri, Florida, and Ohio made it to the “Naughty” list for either passing or considering legislation that aimed to relax child labor laws. The concern raised was the potential regression in safeguarding children’s rights and safety, particularly in industries like meatpacking and construction. These laws posed significant worries about the exploitation of young workers and their vulnerability to hazardous work conditions. 

#4. Nicole Duncan (CEO and MD of CR Commercial Property Group)

Duncan drew criticism for advocating a return to office work, a stance perceived as disconnected from the prevailing reality and more aligned with the interests of commercial real estate. Her push for office returns was seen as prioritizing these real estate concerns over the safety and well-being of workers.

#5.Tim Gurner

The wealthy Australian businessman made comments that were scrutinized for hinting at a preference for increased unemployment and a change in the power dynamic between employers and employees.

We need to see pain in the economy

Tim Gurner, CEO of the Gurner Group, told the Australian Financial Review’s property summit in September. “We need to see unemployment rise — unemployment has to jump 40 to 50 percent, in my view.”

His statements were viewed as dismissive of genuine worker concerns and well-being, reflecting an insensitivity to the challenges faced by employees and their job security. This perception contributed to his inclusion on the “Naughty” list. 

Nice List

#1. Deel.com

Acknowledged for its stand in facilitating remote work, Deel gained acclaim for its impressive growth trajectory, successful fundraising endeavors, and the potential IPO in 2025 in the pipeline.

As remote work becomes more popular, Deel’s adaptability threatens traditional systems

The company’s substantial expansion perfectly aligned with the surging trend of remote work that has gained momentum since 2020. 

As remote work becomes more popular, Deel’s adaptability threatens traditional systems, like local employment agencies, by providing a global platform for talent and employers to connect directly.

#2. Google for Jobs

Applauded for its significant enhancements in user experience and platform layout throughout 2023.In February of that year, Tom Chevalier from Appcast Labs observed Google conducting layout tests, resembling a public beta, showcasing job listings within the paid ad section.

These enhancements were strategic responses to changing market dynamics,

especially in response to competitors like Indeed, adapting to alterations in their cost-per-apply model. Google’s responsiveness and commitment to user experience were recognized as positive advancements in the industry.

#3. Vette (VETTE.io)

landed on the “Nice” list for revolutionizing interview scheduling. Their unique method directly links job seekers to interviews based on qualifications, aiming to humanize and personalize recruitment. With Vette’s Instant Interviews and Swift Feedback, candidates can get quick interviews and responses within 10 minutes. This innovation might change the game for recruiters by speeding up the hiring process significantly.. 

#4. The UAW (United Auto Workers)

Specifically recognizing UAW President Shawn Fain for their proactive efforts in mobilizing the workforce and advocating for enhanced working conditions, wages, and benefits. The UAW’s proactive stance was seen as a significant step towards fostering fairness and equality in the labor force, highlighting the importance of championing workers’ rights and overall well-being. 

 

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More recruiters, boomerangs, DEI, retention and upskilling: 5 Talent Acquisition trends for 2024

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1. Mo’ money, mo’ recruiters

A fresh study from Robert Half’s State of US Hiring Survey reveals that 57% of participants have intentions to incorporate new full-time roles in the initial half of 2024. Furthermore, approximately half of employers (51%) are gearing up to boost initial salaries in 2024 to allure adept professionals. Moreover, more than two-thirds (67%) expect to hire contract workers as part of their staffing strategy.

2. The need for a retention plan

Retention was everywhere in 2023. Or, was it? In 2023, 23% of the UK workforce expected to change jobs within the next 12 months, up from 18% in 2022, according to a PwC survey. “It’s clear that workplace dissatisfaction looms large”, Sarah Moore, Head of People and Organisation at PwC UK, said. “With pay, workload and overall fulfilment at the top of employees’ minds.”

“Organisations who continue to prioritise their people and invest in programmes focussed on wellbeing, flexible working, career progression and more personalised benefits will reap the rewards of employee loyalty.”

“As economic conditions remain uncertain, employers will have less means to respond through pay, so will need to find more flexible and innovative approaches to engaging their staff. Organisations who continue to prioritise their people and invest in programmes focussed on wellbeing, flexible working, career progression and more personalised benefits will reap the rewards of employee loyalty.”

3. Upskilling: AI and soft skills

Since its introduction to the dictionary in 1983, upskilling has been a term in use for several decades. However, the underlying concept predates its entry. Essentially, upskilling serves as a means for employers to support their workforce by facilitating the acquisition of new skills, enhancing existing skill sets, or adjusting to evolving technology and demands. Throughout history, upskilling has played a pivotal role in various aspects of professional growth, encompassing leadership and soft skills.

Throughout history, upskilling has played a pivotal role in various aspects of professional growth, encompassing leadership and soft skills.

In the current landscape of 2024, its significance is notably heightened, particularly in the context of cultivating the technical proficiencies required to excel in technologies like ChatGPT and machine learning. The widespread acknowledgment of these advantages is underscored by recent studies revealing that employers are prepared to offer a premium of up to 40% for individuals equipped with AI expertise.

4. Is 2024 finally the year for DEI?

Finally? Really? Well… a significant proportion of human resources decision-makers (75%) indicated that their company intends to prioritise diversity hiring, as per Jobvite data. In EY’s Belonging Barometer 3.0, 63% of Generation Z workers stated a preference for a company that prioritises diversity, equity, and inclusion (DEI) over one that does not.

63% of Generation Z workers stated a preference for a company that prioritises diversity, equity, and inclusion (DEI) over one that does not.

This statistic is particularly noteworthy since Zoomers are expected to make up 30% of the labour force by 2025. Moreover, with the rise of artificial intelligence (AI), DEI will play a crucial role in addressing biases in hiring algorithms.

5. The year of the boomerang

Research suggests that the average Fortune 500 company could save $12 million annually by actively recruiting alumni. Overall, hiring a boomerang reduces time and cost by 53%. But what allows for a former employee to successfully boomerang back through the door? According to Cpl’s Talent Evolution Group’s research, it could be down to insufficient efforts being made to comprehend and address the reasons behind former employees leaving their positions.

38% of employees who left their job stated that they were not requested to provide feedback after resigning from their previous job.

More than half of the surveyed employees (55%) by Cpl’s Talent Evolution Group reported not being invited to participate in an exit interview. Furthermore, 38% stated that they were not requested to provide feedback after resigning from their previous job. Proactive engagement with departed employees and a thorough understanding of the challenges they faced could yield valuable insights. This approach has the potential to enhance retention, boost existing employees’ satisfaction, and mitigate the negative feedback left by departing employees. It could even mean they’d be willing to return in the future…

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The 20 most important European labour market and recruitment trends for 2024 (Part 1)

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Reflecting on the year 2023, it’s clear that recruiters went through different challenges in talent acquisition, sourcing and employee retention. While the European labour market is still crying out for a number of changes in policies, especially to fix the flaws in the ILO (International Labour Organization) system, recruiters need to make progress inspite of the challenges.

Recruitment in general is facing its share of highs and lows, ranging inflation impacting wages, resignations, migration, layoffs due to recession and high interest rates, and more that profoundly impacted recruiters. In fact, we can say that in 2023 the fundamental problems on the labour market only became worse, but due to the low unemployment there is no real urgency. It almost seems like we keep rubbing a stain that only gets bigger but because it doesn’t smell, we ignore taking relevant actions to fix them.

The labour market could use some fundamental change, but we cannot expect that change in 2024. Until then, we continue to rub the pre-existing stain. Since the labour market is having historically low unemployment rate and higher rate of workers and labour participation, it is easy to ignore the need for the fundamental changes.

“The stain does not smell yet or so we like to look away and pretend we do not see the stain”

In 2024 the labour market is becoming slightly more spacious, but remains very tight. The infinite growth models of RPO- and staffing agencies seem more difficult when they completely rely on LinkedIn. Those who have invested in a candidate-oriented approach with talent pools, professional recruitment systems, trained recruiters, recruitment marketing automation and those who are now experimenting with AI, could grow very quickly in 2024. Let’s explore other trends to prepare for 2024.

1. Blue collar work and practical education is hot

A new study by the World Bank, ILO, and UNESCO predicts a big increase in training for job skills in the next 20 years. As AI becomes more popular in the coming years, many white-collar jobs would likely be taken over by AI. Where white-collar jobs are being replaced, blue-collar jobs, and jobs based on practical skills are in high demand.

With an increasing senior population, there is a greater demand for healthcare workers.

This means that additional physicians, nurses, and healthcare support professionals are needed to provide proper care to an ageing population. And with the worldwide shift to cleaner and more sustainable energy sources, there is a high demand for practical engineers. Professionals knowledgeable in renewable energy technology, electric vehicle infrastructure, and energy-efficient systems, for example, will play an essential role in crafting a greener future.

There becomes an urgent need to fix formal technical and vocational education and training (TVET). Because more students are finishing lower levels of school and the population is growing, there should be a lot more TVET students in the next 20 years. The link between TVET and job markets is broken in many countries, and urgent action is needed due to big changes like globalization, technology, demographics, and climate change, which affect job needs and opportunities.

Geert-Jan labour market trends

2. Focus on productivity

In the labour market, we will have to do more with “too few” people in the coming decades. The emphasis is on ‘too few’ people and not on ‘fewer’ people. The working population has never been as large as it is today; more than 199 million in the European Union. And there is still plenty room for growth only looking at labour market participation, even if proportionally more people retire in the coming years.

There is still more than enough scope within the European working population, with working from home, self-employment and increasing vitality positively influencing this labour volume. It is good news because as the population ages, the pool is becoming smaller and the demand for labour (both in welfare, recreation, healthcare, etc.) is only increasing as the group continues to enjoy healthy long life.

To avoid overburdening the working population (and that does happen, see trend 13), it is important that labour productivity rises faster than it does now. It means innovation, robotization, automation and digitalization must be embraced, especially if the solution cannot be found in more labour migration. Thankfully, this already seems to be on the rise in recent years and will be further accelerated with the AI ​​revolution.

With the persistent tightness on the labour market, increasing productivity is perhaps one of the most important recruitment instruments

However, technological changes often require more people before they have reducing effects. The question is therefore whether this will tech help ‘us’ in the coming years? At the same time, with the persistent tightness on the labour market, increasing productivity is perhaps one of the most important recruitment instruments’. The right person in the right place and increasing job satisfaction are things that can have a direct impact on productivity.

Recruiters can take a few steps to contribute to that level of productivity
  • Improve the quality of hire — this has a huge productivity effect of over 10%.
  • Improve retention, including increasing internal mobility and career development at all levels within the organization
  • Implement total talent management so that permanent/flexible are in balance
  • Better matching, through the use of parties such as Pera, Brainsfirst, Thomas International and Traicie among others.
  • Investing in the quality and professionalism of recruiters.
  • Investing in vitality in the broadest sense of the word
  • Making job satisfaction a part of KPIs for management and leadership

Pera AI

Within recruitment and HR, productivity, productivity improvement and impact on productivity should be one of the most important KPIs to tackle the shortage.

3. AI is the trend, but it is not breaking through yet!

Artificial intelligence (AI) with the arrival of ChatGPT, OpenAI, (LLM, Generative AI etc.) Bard, Gemini, Mistral, and the several thousand GPTs and equivalents, already have a gigantic change in our lives. This goes much further than just work, the labour market, HR, Career and/or Recruitment. Since December 2022, this has been the trend and hype that you cannot ignore. 2024 will likely not yet be the year of AI’s breakthrough, but AI will be all around us.

Of course, OpenAI has already been implemented in every self-respecting VMS, ATS and other HR system. This is a good step forward, especially when it comes to writing vacancy texts, managing campaigns or calculating recruitment KPIs, communicating with candidates/sourcing and hundreds of other examples. However, in 2024 we will be overloaded with new functionalities, examples, use cases and best practices from leading parties such as Wortell, SteamTalmark and Capgemini already do that now. But the real game changer will really be the broad rollout of Microsoft CoPilot within our daily use of Word, Excel, Teams, PowerBI and Powerpoint. This, together with the rollout of ChatGPT 5 and  Gemini in 2024, will ensure the AI ​​explosion in 2025 or 2026.

Until then we have to make do with great innovations via Dall-e-3, Midjourney, or RecruitAgent.ai among others, which has linked a large number of APIs and AIs and makes national and international recruitment possible in a flash. The real speed explosion of AI lies in connecting multiple APIs and AIs.

RecruitAgent

4. Job boards and socials are past their peak, but tech giants continue to dominate

Let there be no misunderstanding, a recruitment campaign in 2024 without the use of job sites or social media will not often occur. However, the lack of unemployed and active job seekers has not done any good to the effectiveness of job boards in recent years.

The global turnover growth of job boards was still ‘double digit’ in 2022 and the market leadership of Indeed and LinkedIn, in Europe, is becoming increasingly dominant. But growth will turn into a contraction in 2023 (decreasing effectiveness, fewer vacancies, price/quality is under pressure). It will eventually lead to many reorganizations at parties such as StepStone, Ziprecruiter, Indeed and LinkedIn. Due to the tightness on the labour market, candidates need fewer sources and fewer applications to find jobs. This leads to pressure on turnover for these parties.

The costs for employers are rising rapidly because of ‘ghosting’ and fake applicants are increasing.

In the total sum of the recruitment mix you still cannot do without job boards and social media, especially compared to other sources such as agencies. But it didn’t get any more fun in 2023. The costs for employers are rising rapidly because of ‘ghosting’ and fake applicants are increasing. Quality and effectiveness are therefore under great pressure in these channels, and the time investment of recruiters per hire is exploding. The productivity of a recruiter is down and costs are up, which puts pressure on the business model of recruitment.

Recruiters all over the world complain a lot about LinkedIn’s stranglehold contracts, declining service and effectiveness, and inaccessibility of tech giants such as Google and Meta.

However, saying goodbye in 2024 will not yet be an option, but this is my advice:
  • No longer entering into long-term contracts (never longer than 1 year)
  • Fake applicants / measuring ghosting and requesting refunds
  • Share dissatisfaction more widely
  • Keeping an eye on Google for Jobs (new developments have been announced)

In 2024, your recruitment strategy should at least include a scenario to recruit without the big tech giants. It shifts the sourcing strategy to referral, campus, employer branding, open days, alumni and all ‘human contact’ recruitment instead of tech. It could well be that this, together with e-commerce technology (see point 7), forms the basis for the winning recruitment strategy of the future.

5. Employers cannot get away from LinkedIn, but talent and women is!

LinkedIn will remain very relevant in recruitment this 2024, as well as the years to come. We can’t say goodbye to the job board and social media platform just yet, because contractual obligations of several years have been concluded with LinkedIn, and this takes a significant bite out of the recruitment budget. Also it takes time to create an alternative recruitment approach.

Even for a recruitment leader like you, it won’t be possible to completely leave LinkedIn or scale down.

For the time being, employers and recruitment teams will continue to identify LinkedIn as the most important recruitment tool and this is not without reason.

Candidates increasingly prefer to be approached instead of searching themselves. While LinkedIn claims to have a billion users  in 2023, in addition to the many inactive, dead and fake accounts, they are increasingly men. Two-thirds of the profiles are currently from men and this number is increasing now that women are increasingly leaving LinkedIn.

The professional network is more and more being used for political and non-professional purposes, with 9 in 10 women affirming to be harassed ‘romantically’ and/or ‘inappropriately’. A major reason for women leaving the network.

LinkedIn inappropriate messages

Men being overrepresented on LinkedIn has to do the platform having a primarily high educated (white collar) platform with a strong emphasis on science education/white collar professions and less on humanities/care/social. Men are more represented in these professions and education levels. But as LinkedIn is used in different ways, women are becoming less accessible to Inmails and messages from recruiters. For companies that attach great importance to D&I, it is certainly something to take into account.

“20 years ago you were special if you were approached, today you are special if you were not”

Approached by recruiters

Another group that goes completely ‘crazy’ by recruiters who are approached continuously and daily, include the most sought-after IT profiles ranging from software engineer to ethnic hacker. This group is becoming  more difficult to find and reach on LinkedIn, up to becoming unreachable and even leaving LinkedIn. Where the rest of the market is increasingly approached with confidence, as we will see in trend 6, we see that independent IT professionals are the first to choose not to be reachable and therefore take control on the labour market themselves.

An increasing number of people are not being approached as a result of choosing not to be reachable. Instead, they choose to work with a select group intermediairs/recruiters who take them from assignment to assignment, and employer to employer. ICT professionals have been the canary in the coal mine for 25 years when it comes to trends and developments in the labour market; with the self-employed ICT professional again leading the way. Perhaps the most important signal is not that LinkedIn has passed its (professional) peak, but that agencies and recruiters are increasingly becoming talent managers. They’ve moved from hunters to farmers.

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The rise of ‘climate quitting’: consciously resigning to save the climate

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Would you like to contribute to an increasingly warmer future worldwide? Or commit yourself to a more sustainable planet? Want to contribute to the problem of climate change? Or become part of the solution? If you ask young people, more and more people are choosing the latter. It is so much that a term has already been coined: ‘ climate quitting‘. It is a kind of superlative of quiet quitting and refers to young people who want to find meaning in their work again by working for a better (sustainable) world instead of against it.

Be part of the problem? Or just work on the solution? More and more young people prefer to choose the latter.

The term has been known for almost a year but became popular again recently. Now that a climate summit has taken place in Dubai, of all places, oil interests appear to play a major role more than ever before. It also echoes research from CCS marketplace Supercritical, which found that 35% of (UK) employees said they would be willing to quit their job if their employer took little climate action. This figure rises to 53% for employees of Generation Z. Additionally, recent research by former Unilever CEO Paul Polman shows similar figures.

Carbon capture

One company responding to this is, for example, Dutch-Scandinavian Paebbl, which aims to supply carbon-negative building materials. For example, Forbes recently published an article about how much this company contributes to carbon capture. Part of Paebbl’s strategy to achieve rapid growth is to build teams where the best talent can be found. Because of this, the company has chosen to select Rotterdam as an R&D centre. Now, it has attracted engineers and operators who previously worked at companies such as ExxonMobil, LyondellBasell, Total Energies, Shin-Etsu and Union Platinum.

Paebbl-team-in-Rotterdam-2-640x404

“More and more talent from traditional industries is transitioning to sectors focused on sustainability,” said Arnold Choi, VP of Engineering. “The expertise that comes from these large-scale, capital-intensive, heavy industries can help small, innovative start-ups like us solve many practical problems. These experienced professionals bring a wealth of knowledge and skills, which has enabled Paebbl to achieve what many considered impossible.” The company expects to double the number of employees by the end of next year.

Climate as an opportunity

Paebbl’s story fits the trend where climate is increasingly seen as an opportunity for business. Sustainable companies are focusing on locations where a lot of fossil industry is currently located in the hope of being able to source talent there. According to the International Labor Organization, 24 million jobs will be created worldwide in the sustainable sector by 2030 (with the right policies). “Investing in green energy or technology, for example, is a mega opportunity – especially in the long term,” says Simon Mundy, author of the book Race for Tomorrow, and a lot of talent appears to want to be part of that.

‘Quitter sounds a bit negative. If you consciously choose for the climate, I think that is actually a positive thing.’

For Annemiek Nusmeijer, owner of Greenjobs.nl, the climate quitting phenomenon is nothing new. When she took over the sustainable vacancy platform in 2019, climate-loving job seekers immediately applied in mass, she says. ‘From the moment I started, I was told: hallelujah, finally a place where you can find a job with positive impact! Just like vegetarians who are excited about more vegetarian options in the supermarket.’ Although she prefers to talk about ‘climate starters ‘:’ Quitter sounds a bit negative. But if you consciously choose for the climate, I think that is actually a positive thing.’

Frustrated young people

It also ties in with what BCG CEO Rich Lesser recently stated in the FD in response to the question of why the consultancy firm had called on climate activists to come and work for them. “Some activists are very anti-business,” Lesser said. ‘With the exception of a few, I don’t think they want to come to BCG. But I think there are many passionate young people who want to make a difference who are frustrated by the slow pace of needed change. We are looking for them, and I think they know where to find us.’

BCG CEO Rich Lesser: ‘There is nothing wrong with demonstrating and protest signs.’

There is nothing wrong with demonstrating and protest signs, he also says. ‘But I believe that people who come to work with us for a number of years also develop the capabilities to initiate change by helping companies become more sustainable more quickly.’

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This is how you deal with salary negotiations? 4 major tips

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The question lingers: how can both sides manage these dialogues with composure and thoughtfulness, avoiding hasty decisions that might not align with their expectations? 

Managing salary negotiations in a tight job market  

In the third quarter of 2023, according to Eurostat, around 2.6% of jobs across Europe and 2.9% in the euro area were vacant. Specifically, Belgium had the highest number of job openings at 4.7%, followed by the Netherlands (4.5%), Austria (4.2%), and Germany (4.1%). 

This statistical insight highlights a situation where job seekers had a considerable pool of options in these regions.

This surplus of job openings gave individuals seeking employment a stronger position to negotiate better compensation when considering job offers.

But even if companies opt for salary increments, this underlying scarcity of skilled personnel won’t swiftly vanish it the opinion of employers. While a temporary salary boost might momentarily satisfy workers, the persistent dilemma revolves around securing a sustainable workforce in the long term. 

Hence, it’s important to navigate talks about salary adjustments with a view to fostering long-term contentment for both employers and employees. How can these discussions be handled adeptly to maintain satisfaction and balance in the long run? Here are four crucial aspects to consider 

#1. Crafting job listings for transparency  

Being transparent even before employment begins sets the stage for trust and clarity between employers and potential employees. Many European employers often opt for terms like ‘competitive salary’ instead of specifying an exact figure in job postings.

This choice stems from various reasons, ranging from worries about deterring candidates to leaving room for negotiation or a lack of insight into competitors’ pay scales. Moreover, some employers prefer to keep new hires’ salaries confidential from existing employees. 

Transparency in salary information can notably narrow the pay gap by 20 to 40%, a vital aspect often overlooked.  

The absence of such transparency frequently leads to negotiations among both new and current employees. However, clearly stating salary details in job postings sets explicit expectations and reduces prolonged negotiations, enabling a fairer starting point. 

#2. Implement a Continuous Dialogue

 Establishing continuous dialogue benefits both employers and employees by fostering a culture of open communication and mutual understanding. This practice ensures that expectations and responsibilities are transparently communicated, leading to a more harmonious and productive work environment.  

For employers, this approach allows for better insight into employees’ career aspirations, skill development needs, and job satisfaction levels.

By actively engaging in these discussions and setting short-term goals, employers gain a clearer understanding of their workforce’s evolving needs and can align these with the company’s objectives. 

Simultaneously, employees feel more valued and motivated when their voices are heard, contributing to a positive work environment. Through ongoing discussions, employees gain clarity about their career progression within the company, understand the skills needed for advancement, and feel supported in their professional growth.  

This mutual understanding reduces surprises during salary discussions, as both parties have a shared understanding of the employee’s contributions and the company’s expectations. 

An example highlighting the dual benefits of continuous dialogue could involve a marketing team member expressing an interest in learning new software to enhance their skills. Through ongoing conversations, the employer recognizes this aspiration and arranges relevant training sessions. The employee feels empowered and invested in, while the employer benefits from an upskilled workforce aligned with the company’s needs.  

This shared dialogue allows both parties to proactively address skill gaps and career aspirations, making salary discussions more predictable and aligned with mutual growth objectives. 

Ultimately, establishing ongoing communication channels benefits both employers and employees by nurturing transparency, trust, and collaboration, ensuring that salary discussions are approached with a shared understanding and consideration for mutual growth and success. 

#3. Leveraging benefits beyond pay 

Exploring additional benefits beyond just salary opens doors for employers to cater to employees’ preferences. Things like extra leave for birthdays or more vacation time are valued by workers and can boost their happiness at work. Also, flexible work hours or letting people work from home can help them balance life and work better. This might mean they get sick less and do better work. 

Volvo, for instance, gives new parents six months of paid leave, showing they care about families. When companies set clear rules for working from home, it makes employees happier and more committed. Getting free, healthy lunches at work keeps everyone feeling good. 

Some companies, such as Netflix and Google, let their employees take as many days off as they need.

This helps build trust among coworkers.

They also have programs that reward employees for being healthy, helping them grow both at work and in their personal lives. 

When bosses connect pay raises to how employees grow in their job, it makes workers feel more powerful and part of the company’s goals. But if talking about pay keeps going wrong, bosses might try one last thing to solve the problem nicely. 

This shows how important it is to tell everyone about salaries from the start and make sure everyone gets good benefits, making work a fair and happy place for everyone. 

#4. Engaging in Coach-like Negotiations 

When talking about how much someone gets paid, it’s good to act like a coach. Instead of just saying “no” to more money, it’s important to know why they want it. Showing you care about their reasons opens the door to talking about how a salary change might affect everyone at work. 

Listening carefully is really important during these talks.

Keeping things positive shows that you want things to be fair for everyone. Taking time to think and agreeing to talk about it again later can make them feel heard and respected, even if the final decision is different. 

Understanding why they want more money helps you suggest things other than just a higher salary. It could be something else that’s important to them.

This kind of attention can make things better for everyone. 

In the relationship between bosses and workers, trust, commitment, and being motivated are super important. For example, let’s say you have two ways to thank a colleague: giving them 500 euros as a year-end bonus or a 200-euro dinner voucher with a note thanking them for their hard work.

Which would you pick? Paying attention to what each person values is a big part of doing well together. Sometimes, a special thank-you or recognizing their hard work means more than just money to make workers feel appreciated.

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Will AI replace more jobs than it will provide?

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It’s a common concern, especially as big companies like Apple are expanding their AI teams. However, it’s not just about job loss—AI is also creating new opportunities. For example, Apple’s CEO, Tim Cook, recently announced plans to grow their U.K. offices specifically for AI-related roles. As companies like Apple announce plans to grow their AI staff, it’s crucial to recognize that AI isn’t merely a threat to employment; it also presents new opportunities.

However, A March Goldman Sachs report found that AI might disrupt over 300 million occupations worldwide, while the global consulting firm McKinsey anticipated that at least 12 million Americans would change careers by 2030. Additionally, experts in Credit Suisse believe the AI software market is expected to reach $1.09 trillion by 2030. This growth is likely to benefit industries like semiconductors, leading to a demand for specialized technical roles. Companies such as Intel and Analog Devices are already developing AI-specific hardware, sparking competition for skilled professionals.

Loss of Jobs?

The World Economic Forum (WEF) offers a comprehensive perspective through its Future of Jobs Report. While predicting the loss of 85 million jobs by 2025 may raise eyebrows, the WEF also anticipates the creation of 97 million new jobs during the same period—a net gain of 12 million jobs. This seesaw effect, where some jobs decline, but more jobs surface, paints a more optimistic picture of the evolving job market.

In the WEF’s vision of 2025, there’s a fascinating prediction – the time spent on tasks at work by humans and machines will be nearly equal. This forecast signals a monumental shift in work dynamics, indicating that humans will collaborate more closely with technology.

Contrary to fears of AI taking all the jobs, the WEF shows the resilience of the job market, with new opportunities emerging.

For employers and recruiters, the challenge lies in finding the right mix of tasks for humans and machines. Additionally, there’s a critical role in helping workers acquire new skills before it’s too late. The workplace puzzle in the age of AI integration demands a strategic and balanced approach, ensuring that everyone can adapt to these transformative changes.

Are companies preparing for the AI job market? 

An analogy drawn by Marcelo Schnettler, VP of engineering at Prudential Financial, likens the impact of AI on employment to the introduction of automobiles. While AI won’t replace every job, it will bring significant changes. Schnettler suggests that companies need to adapt their hiring practices and employee expectations, similar to the shifts seen during the transition from horses to cars.

The analogy emphasizes that while AI won’t replace every job, it will undoubtedly bring about significant changes in the employment landscape. In response, companies need to adapt their hiring practices and employee expectations to align with the evolving needs of the job market.

In the Generative AI and the future of work in America report from McKinsey, a compelling statistic emerges:

One-third of the jobs we have today didn’t even exist 25 years ago.

This profound transformation underscores the dynamic nature of the job market. Despite concerns about AI replacing some jobs, McKinsey’s findings remind us that new jobs continually emerge. Consider the jobs related to smartphones or social media; these roles didn’t exist just a couple of decades ago.

Looking ahead, the future of AI-related jobs is uncertain, but current trends suggest significant growth. It isn’t entirely certain that AI will take more jobs than it provides, but what is certain the growth and investment in AI in many sectors. As of July, companies have invested $142.3 billion in AI. Although major companies may not be hiring extensively for AI roles right now, job platforms like Indeed list over 30,000 machine learning jobs and 28,000 AI jobs. Such a surge in demand for expertise signals a changing landscape in the job market, indicating a need for professionals with AI-related skills.

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Women are earning 26% less than men in the tech sector

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Across the European tech sector, a noticeable difference exists in pay between men and women, showing a median gender pay gap of 26%. This translates to women earning, on average, 26% less than their male colleagues.

Digging deeper into the numbers, it’s clear that the gender wage disparity varies by country. Some areas face a bigger disparity, while others show indications of recovery. Based on the Ravio compensation report, the UK has the highest rate of 29%, Germany follows with 25%, the Netherlands has 23%, and France has an 18% gender pay gap.

Why does the gender pay gap exist in the tech sector?

According to research from Figures and 50inTech, for every woman occupying a high-level position, there are six men in comparable positions. That is an enormous rationale for the pay disparity in and of itself.

One main reason for this pay disparity is that many European women may be ignorant of their own worth. The same research showed that 60% of employees at technology startups are unaware of their market value. Presently, this ignorance is more prevalent among women.

When women in the tech sector do not understand their worth, it becomes easy to get an unequal remuneration package, notwithstanding their ambiguity about their worth.

Over 32% of persons in mid-level employment say their pay is at least 20% below what it should be. It is rather problematic for technology businesses since it signals that future leaders and talented staff may be lost to other industries.

Salary negotiation is a challenging task that frequently confronts women. Approximately 36% consider it to be extremely distressing. A mere 7% of applicants will submit a job application if the salary is not disclosed in advance. 83 percent of those surveyed believe including salary information in employment proposals should be a top priority. Transparency is not the only consideration; boosting women’s confidence when discussing money during job interviews is also crucial.

Will the EU pay transparency directive impact the pay gap? 

Beyond the gender pay gap, the Ravio report took a closer look at workforce composition within European tech companies and revealed a distinct gender distribution. On average, these companies maintain a workforce mix of 60% men and 40% women.

As one moves up the corporate hierarchy, the proportion of women decreases, highlighting the persistent gender disparity in leadership roles.

The upcoming implementation of the EU Pay Transparency Directive by 2026 marks a significant shift in the approach to gender pay equality. Surprisingly, 69% of surveyed people leaders do not consider it a pressing concern. For 45% of respondents, the perceived distant implementation date is a key factor, while 20% are already proactively addressing pay transparency and gender pay gap issues.

For companies expressing concern, the primary cause centres around making pay levels and career progression frameworks transparent and accessible to employees. In anticipation of the directive’s implementation, organisations are placing emphasis on improving communication, transparency, and compensation frameworks.

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Tech hiring rate and pay drops by 40% in Europe

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In Europe, tech hiring, and compensation gains are significantly down compared to the previous year. Based on the Ravio compensation report, a substantial trend this year is a considerable drop in the overall rate of new hires. It has fallen from 67% in the last year, to now, 37%.  In other words, tech hiring in the continent would be at least 40% lower in 2024 compared to the previous year.

Ravio surveyed 900 employers, and 55% said they planned to keep the same number of employees in the first half of 2024. The implication is that these companies will replace retiring/quitting employees but not actively seek new ones.

This decline is consistent across all funding stages, with late-stage companies experiencing a particularly sharp decrease, halving their hiring rate compared to the previous year. The main driver behind this decline is the decrease in public market valuations and a nearly closed IPO window, limiting funding options for late-stage companies and consequently impacting their hiring and growth prospects.

The tech sector has witnessed a higher rate of employee layoffs this year than ever before.

TechCrunch reported that 240,000 tech jobs were lost in 2023, both from startups and giant tech companies like Spotify, Amazon, and Google.

Wages may not rise in 2024

As if it isn’t bad enough that tech hiring is reducing, the wages and compensation don’t have a significant increase. Surprisingly, 59% of companies do not plan to increase new hire salaries in the next six months, despite a 4.9% inflation rate across Europe.

Within the subset of companies planning salary increases, the primary reasons include keeping up with inflation and attracting more senior candidates. These tech firms anticipate a 4.8% increase in basic compensation for their staff in 2024. However, the amount indicates a 40% decrease from the wage increase in the previous year.

This decision is not isolated; it reflects a broader trend wherein companies are cautious about their expenditure in the face of economic uncertainties.

Most of the tech company layoffs in 2023 were due to inflation that affected the prices for services, and to cover up, they had to make cuts.

Their decision to increase wages just enough to meet inflation wages still reflects that companies are still trying to make cuts, which were necessary. Consequently, job seekers entering the tech industry may encounter limited upward movement in compensation.

Are there plans for new hires and growth?

A mere 44.8% of companies plan to grow their headcount in the next six months. Among these, there is a relatively even split between those actively accelerating hiring and those maintaining hiring levels. Intriguingly, early-stage companies, particularly those with pre-seed or seed funding, are less inclined to prioritize new hires, with 67% indicating that they are only replacing leavers.

For companies intending to hire, engineering emerges as the most-cited job family (23%), reflecting its significance in the overall job landscape. This may hint at a potential uptick in the hiring rate for engineering roles in the coming months. However, there has been no significant change in median salaries for Software Engineering in the past year. For instance, the current monthly wage for a software engineer in the Netherlands at the medior level is currently €4,040, according to Giant, and there might be no significant change over the next few months.

Notably, there is variance across job families, with commercial roles such as sales and account management also experiencing a demand among companies who intend to hire within the next six months (8%). It is likely a strategic move by companies to focus on core topline growth in a challenging funding environment, sidelining new product initiatives.

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